How To Purchase An REO Property

[Jesse DeArmon]

How Do I Purchase An REO Property When the Bank Doesn't Know They Own It?

I'll start by saying I've always wanted to purchase a foreclosure but never really had the guts or understanding.  

But I think I've found the one and I need some help.  It's owned by a local bank and I'm not sure they know they own it.

By found I mean I've watched this vacant house in my neighborhood (on a corner lot on Main St.) deteriorate over the last several years.  I kept thinking surely someone was going to come in and claim it, flip it, rent it, sell it, something.   But it's still sitting there.

I did some research with the County Assessor and found it was purchased 6/24/99, went to HUD 4/17/2013, and then back to the bank 6/8/14. I pulled the tax records from the County Treasurer and find that the bank has been paying the taxes since the house was purchased in '99. Since 2014 there have been multiple weed assessment fees charged to the account and all were paid by the bank.

Almost like the account is on Auto-Pay and they don't even know they own it.

I'll also say it was very difficult to find the records for this house online.  I couldn't even find the address on the County Assessor's website by using the legal address.  I had to get creative in my search efforts to locate the property and see the tax bills.

With all that I think there's a golden nugget here but I'm not sure how to extract it.  Any ideas on how to approach the bank?  My worry is once they know it's game over and it's off to the auction or their local investors.  I'm looking for a way to pick this up quickly and quietly.  

Thoughts:

• Email the Bank?
• Write a Letter to the Bank?
• Call the Bank?
• Go to the Bank?
• Cash? 
• Finance?
• Traditional Mortgage? 
• Hard Money Lender?
• Ask the Bank to Finance?
• Find Local Investors to Broker the Deal?

I appreciate any help or ideas offered.

[Greg H.]

So here is my best guess what happened here. The lender foreclosed and conveyed to HUD to collect on the mortgage insurance. There was probably a title issue so the property was conveyed back to the lender. Eventually is will be solved and Become a HUD property

Reality is, in this case you are wasting your time. They are not going to sell you the property cheap as once the issue is solved they can collect on the insurance.